Goosehead Insurance, Inc. (NASDAQ:GSHD) Capital Efficiency Analysis

Core Insights - Goosehead Insurance, Inc. is recognized for its innovative approach in the personal lines insurance sector, utilizing technology to enhance customer experience and streamline operations [1] - The company demonstrates strong financial performance with a Return on Invested Capital (ROIC) of 14.63%, significantly exceeding its Weighted Average Cost of Capital (WACC) of 9.61% [2] - Goosehead's ROIC to WACC ratio of 1.52 indicates effective capital management, positioning it favorably compared to peers [2][5] Financial Performance Comparison - Live Oak Bancshares, Inc. has a ROIC of 4.52% and a WACC of 31.61%, resulting in a low ROIC to WACC ratio of 0.14, indicating poor capital efficiency [3] - Kinsale Capital Group, Inc. shows a ROIC of 10.64% against a WACC of 8.86%, achieving a ROIC to WACC ratio of 1.20, which is better than Live Oak [3] - Sprout Social, Inc. reports a negative ROIC of -25.59% with a WACC of 7.66%, leading to a negative ROIC to WACC ratio of -3.34, highlighting its challenges in generating returns [4] - Palomar Holdings, Inc. has a ROIC of 2.82% and a WACC of 5.20%, resulting in a ROIC to WACC ratio of 0.54, indicating potential for improvement [4] - Hamilton Lane Incorporated stands out with a ROIC of 18.05% and a WACC of 9.22%, achieving the highest ROIC to WACC ratio of 1.96 among peers, showcasing superior capital utilization [5]